Brits carry debt into retirement

A new survey has revealed that a large number of Brits are not saving money adequately, and risking an uncomfortable retirement laden with debt.

The survey was conducted by Saga, they interviewed almost 15,000 people over the 50 with regards to their spending and saving habits. Worryingly they discovered that 1 in 5 60-65 year old's are still paying off their mortgage, and planned to continue doing so with their pension.

A reason for the dwindling savings could be the poor returns found with most savings accounts. Concerns have been raised regarding interest rates, currently at an all time low.

Dr Ros Altmann, Saga’s director general, said: “Boosting their savings and pension pots is really important for the over-50s, to ensure a comfortable retirement. Worryingly, this is not happening. This will affect all of us in future, because if older people do not have money to spend, economic activity will fall and we are heading for economic decline.

However the Department for Work and Pensions is confident that people will soon begin to save again. A spokesman said: “Our reforms will get millions more people saving for the first time or saving more with support from their employer. On top of this we restored the earnings link and brought in a triple lock for the basic State Pension, ensuring that people get a decent base from the state.”